Chelsea were last night locked in talks with Benfica to sign David Luiz after
making an improved offer of £21million for the highly rated Brazilian
defender.

On the move? Chelsea want Luiz to boost their defensive optionsPhoto: REUTERS

By Jason Burt

7:00AM GMT 19 Jan 2011

Luiz has been Carlo Ancelotti’s top transfer target for some time and, although the new offer still falls short of the Portuguese club’s £34million valuation of the player, there was a sense that a breakthrough had been made and a deal could be completed.

Ancelotti rates the 23 year-old extremely highly and, even though he will partner John Terry in central defence if signed, Luiz can also play at full-back and even as a holding midfielder.

Chelsea are in desperate need of reinforcements this month and Luiz is regarded as one of the rising stars of European club football. Given his age, he would help redress the balance of an ageing squad at Stamford Bridge.

With Manchester City having apparently decided against bidding for Luiz during the transfer window, Chelsea may be the only suitors and Benfica’s financial difficulties could force them to sell now.

The Premier League champions’ representatives were in Lisbon last night to negotiate the transfer and it is hoped that a deal can be announced ahead of Monday’s match away to Bolton Wanderers. Chelsea bid for Luiz earlier this month but the offer was less than half Benfica’s requested fee and was rejected out of hand. At that stage, Ancelotti was resigned to missing out on the player.

Chelsea have two other central defenders on their wanted list should they fail to acquire Luiz. They have been monitoring Gary Cahill, but will not meet Bolton Wanderers' asking price of close to £20million, and are strongly interested in Atletico Madrid’s Diego Godin. They inquired about the Uruguayan last week.

Having missed out on Steven Pienaar to Tottenham Hotspur despite matching the £3million fee for the Everton midfielder, Chelsea are keen to bolster their squad as quickly as possible.

They are interested in Aston Villa’s Stewart Downing but he is not regarded as a priority by Ancelotti and would be an expensive acquisition. Pienaar was attractive because he was available cheaply, with his contract in its final months.

With Alex having suffered a setback in his rehabilitation from knee surgery – although it is hoped he will return in time for the return of the Champions League late next month – and with fears that Terry could break down at any time as he struggles with chronic back and leg problems, Ancelotti knows he has to improve his central defensive options. Should the Italian sign a defender, he will allow Jeffrey Bruma to go out on loan.